Valeant dropping deal making for near term

Discussion in 'Valeant Pharmaceuticals' started by Anonymous, Dec 9, 2014 at 9:14 AM.

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  1. Anonymous

    Anonymous Guest

    (Reuters) - Valeant Pharmaceuticals International Inc (VRX.TO) is abandoning its growth-by-acquisitions strategy for the time being to try to reduce debt, boost its stock price and one day return to its traditional deal-making in a stronger position, people familiar with the matter told Reuters.

    After spending $19 billion on 40 acquisitions since 2008, the Canadian drugmaker is regrouping after failing last month to acquire Botox-maker Allergan Inc (AGN.N), they said.

    The new strategy, targeted for the next two to three quarters, may surprise some investors accustomed to Valeant's usual way of doing business. Speculation about Valeant's next takeover target has driven up shares in generic drugmaker Mylan Inc (MYL.O), medical device maker Cooper Companies (COO.N) and Teva Pharmaceutical Industries Ltd (TEVA.TA).

    Valeant does not rule out pursuing deals where appropriate, but it is focused on its ability to pay down debt or buy back shares, said spokeswoman Laurie Little.

    "The silver lining that has come out of the Allergan situation is that we have already reported one relatively clean quarter," said Little. "By delivering several more clean quarters over the next several months, we will clearly show the strength of our base business."

    By clean quarter, Little was referring to the absence of one-time acquisition costs that frequently appear on Valeant's balance sheet.
     

  2. Anonymous

    Anonymous Guest

    Story Taken Out of Context; M&A Continues to Be Important

    from StreetInsider today

    Guggenheim analyst Louise Chen weighed in on Valeant Pharmaceuticals (NYSE: VRX) amid reports from the company will drop deal making. After talking with the company, Chen said the headlines were taken out of context and would view any weakness related to these headlines as a buying opportunity for VRX shares.

    "After speaking with VRX this morning, we are confident that M&A will continue to be an important growth driver for the company," Chen said. "This is the same message that VRX gave when we held a group meeting with investors and the executive management team on 11/21/14. At the meeting VRX said that post the failed bid for AGN (NEUTRAL, $212.56) the company's strategy remains the same. VRX is interested in small and large deals. VRX would look at verticals where it is already established but does not rule out expanding into new verticals. Geographic expansion (especially Asia) is also attractive."

    The firm maintained a Buy rating and price target of $178 on VRX.
     
  3. Anonymous

    Anonymous Guest

    Let the Valeant collapse begin!
     
  4. Anonymous

    Anonymous Guest

    MP has always been such a master of PR
     
  5. Anonymous

    Anonymous Guest

    Too right. Laurie Little has her work cut out for her.
     
  6. Anonymous

    Anonymous Guest

    Thank you A**holes for recognizing VAAP now that thousands of jobs, people and families are in jeopardy. I do not know how MP and BA sleep at night.
     
  7. Anonymous

    Anonymous Guest

    Valeant's debit has been known for years. Ackman has nothing to do with it. Wise up.
     
  8. Anonymous

    Anonymous Guest

    I've never seen a PR hack who can constantly inject contempt and hubris into simple PR releases like her. She's kind of like the Fox News of journalism. A perfect match for Pearson.
     
  9. Anonymous

    Anonymous Guest

    "The silver lining that has come out of the Allergan situation is that we have already reported one relatively clean quarter," said Little. "By delivering several more clean quarters over the next several months, we will clearly show the strength of our base business."


    Yeah good luck with that, never happen, unless you cut no.s which you will!
     
  10. Anonymous

    Anonymous Guest

    Little's "clean quarters" comments sounds like the language of a junkie trying to beat his drug addiction.
     
  11. Anonymous

    Anonymous Guest

    Is Laurie inferring that "unclean'" quarters were truly a scam?